Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata; hereinafter referred to as “Kubota”) has reached an agreement with the Indian tractor manufacturer Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter referred to as “EL”) on joint establishment of a tractor manufacturing company. The particulars are presented below.

1. Background and aims of joint venture establishment

• The Indian market for tractors is one of the largest in the world in terms of the number of tractors, and is projected to continue expanding into the future. At present, the market is supplied mainly by local (Indian) manufacturers, which are reinforcing their tie-ups with foreign-affiliated manufacturers.
• Kubota established Kubota Agricultural Machinery India Pvt. Ltd. (KAI) and entered the Indian market in 2008. This business has been proceeding smoothly since the sales launch in 2015 of a multipurpose tractor adapted to towing and other uses.
• EL has manufacturing know-how and excellent capabilities for components procurement. Through this collaboration, Kubota is determined to accelerate the growth of its tractor business through local production of multipurpose tractors.

2. Outline of the joint venture

Company name	Escorts Kubota India Private Limited
Capitalization	3.0 billion rupees (5.1 billion yen)*
Shareholding rates	Kubota 60%, EL 40%
Location	Faridabad City, Haryana State, India
Time of establishment	Late March 2019 (tentative)
Business	Manufacture of Kubota tractors and EL tractors
Production capacity	50,000 units(yearly)

• 1 rupee = 1.7 yen (the exchange rate as of November 2018)

3. Outline of EL

Company name	Escorts Limited
Representative	Nikhil Nanda, Chairman and Managing Director
Headquarters location	Faridabad City, Haryana State, India
Year of establishment	1944
Business	Manufacture and sales of agricultural equipment, construction equipment, and railways-related equipment
Sales	86 billion yen (about 50 billion rupees in the year ended March 31, 2018)
Number of employees	10,100 (3,700 full-time employees, as of November 2018)

4. Future outlook

• Plans envision that the plant will begin operations in January 2020 and start mass production in June of the same year.

＜Reference＞

【Outline of Kubota Agricultural Machinery India】

Company name	Kubota Agricultural Machinery India Private Limited
Representative	Akira Kato, President
Location	Chennai City, Tamil Nadu State, India
Date of establishment	December 5, 2008
Capitalization	500 million rupees
Business	Sales of agricultural machinery in India

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